Alloy: ‘Canapi is better than the best venture firms in the world when it comes to banking tech’

By Tommy Nicholas

‍Tommy Nicholas is CEO and cofounder of Alloy, the identity and fraud prevention platform that helps financial institutions and fintechs optimize growth while minimizing risk.

I can sum up my views about Canapi in a single sentence: If your company sells to banks and credit unions, you  should be finding a way to work with Canapi.

Founders in this space know Canapi is better than the best venture firms in the world when it comes to banking tech. Because their LPs are banks, they can provide insights, introductions and connections to key partners in the ecosystem in a way that few others can.

When we first connected with Canapi in 2018, we had only about three or four banking customers. Yet the Canapi team was immediately excited about the value Alloy could bring to their Limited Partner base of financial institutions, and they set up a ton of meetings even before any financial investment happened.

"Founders in this space know Canapi is better than the best venture firms in the world when it comes to banking tech."

That was huge. Partnering with Canapi changed the trajectory of our business. They led our Series B round in 2020, deeply integrated us into their banking network, and helped lead us to about 30 Canapi LPs becoming Alloy customers.

I could share more statistics about Canapi’s impact. But the fact is, they’re so deeply woven into our company story—such a partner in the truest sense of the word—that even the most impressive figures don’t quantify it. Suffice it to say, we would be a very different business without Canapi on our team. Canapi helped us book more business, sign more customers, and supported us as strategic partners every step of the way.

Founder-focused strategy and uncommon transparency

As a founder, a lot of people rush to offer you advice—which can be valuable and appreciated. But we really trust Canapi’s guidance, because their approach to advising is different in several fundamental ways. 

First, many of the people who built Canapi were actual bank operators and regulators and were foundational to shaping the banking industry. [Canapi Partner] Neil Underwood and [Managing Partner] Gene Ludwig guide founders from a place of shared experience as operators. And yet they trust and respect us as operators too, never trying to usurp our decision making. 

As one of my two cofounders, Laura Spiekerman, puts it: “Many investors treat your business as if it’s their business they’ve been operating. ‘I’ve done this a million times—just do X, because I know what I’m talking about.’ But they haven’t actually done it as an operator. [Canapi Partner] Walker Forehand comes to us with advice and experience, yet he has a real humility about it. ‘My view is XYZ. But Alloy is your business; you’re the operators, and we support you.’ We really, really appreciate that approach and trust.”

That trust goes both ways: I trust that Canapi is always honest with me. Walker and Neil are up front with us about their motivations and advice. Simply put, I can believe what they say—and that means so much as a founder.

"Partnering with Canapi changed the trajectory of our business. Canapi helped us book more business, sign more customers, and supported us as strategic partners every step of the way."

It’s why Canapi has been such a part of the Alloy story. They’ve advised us on product strategy, long-term planning, potential acquisitions, and whatever else we need. Sometimes it’s actionable insights from their LPs and relationships in the banking industry, and other times they’ve conducted internal or even third-party research that has directly informed our product strategy.

Founders know that when you’re fundraising, lots of people make lots of promises: They’ll introduce you to potential customers, they’ll help you with this or that, they’ll be there for you. Then after the deal is done, not all of it necessarily happens. 

Canapi always makes us feel like a priority. They are a true partner to their founders and portfolio companies, and they will hustle for you like no one else. If your business involves banks and credit unions in any way, you’ve got to find a path to get in with Canapi.